The Japanese Yen is a powerful currency around the globe and uses the abbreviation of JPY. You will find its currency symbol to be the same as the capital Y with two horizontal dashes that goes through the center, ¥, and it takes 100 sen or 1000 rin to make one Yen.
Kavan Choksi- discover some amazing facts about the Japanese Yen with a business expert
Kavan Choksi is a widely esteemed entrepreneur known for his invaluable knowledge of finance and economics. Besides wealth and business management, he is passionate about traveling and photography. According to him, the Japanese Yen has a rich and glorious past. It was The Meiji Government in the country that launched the first Yen in 1871 as an initial step to make Japan a modern economy.
Investors who are interested in investing in the Japanese Yen can buy EFTs in the currency, or they can invest in the Nikke1 225 Stock Average. The Yen is the 3rd most traded currency across the globe after the US dollar and the Euro. It is also considered a reserve currency after the USD.
The Central Japanese Bank has been aiming to get an inflation goal of 2% to balance the economic impact left by the 2020 COVID-19 Pandemic and the global financial crisis that it caused to several nations across the globe.
The Yen was a powerful currency in the global economy in the past too
Japan always had a strong economy, and this made the Yen a potent currency in the past. In fact, the volume of experts in the nation is more than its imports. This trend has made Japan the globe’s largest creditor nation in the world today.
How did the Japanese Yen evolve?
The meaning of the word Yen is a “round object,” and the Meiji Government adopted it officially after the implementation of The New Currency Act of 1871. This Act had the objective of stabilizing the monetary situation in the country and the Yen replace the “Mon” currency that was used during the Tokugawa Era.
The Mon currency was made from copper and later lost its worth in 1973 as silver was devalued during that time when compared to the US and the Canadian dollar, which both embraced the gold standard during the period.
Business and finance expert Kavan Choksi adds that in 1897 the value of the Yen became as less as 50 US cents, and it was in this year that Japan, like its global peers, adopted the gold standard leading to a rise in the value of the Yen. In 1953, the nation ceased the circulation of the sen and the rin.
In 1949, the Yen was pegged to the US dollar, and when America 1971 did away with the gold standard, the value of the Yen dropped again. Since 1973, the Yen has been a floating currency, and the oil crisis in the globe has many times contributed to its rise and the fall of it against the dollar in the USA.